The East Peoria City Council approved refinancing $19 million in general obligation bonds used to finance the Bass Pro project. Peoria Public Radio's Alex Rusciano reports the goal is to get the city a lower interest rate:
The refinancing is expected to save the city more than $1 million over about 16 years. East Peoria has more than $40 million dollars in bonds used for the Bass Pro project, but only half of that was eligible for refinancing. City Councilman Chad Joos says that allows the city to pay more towards the principle instead of interest:
“If we can net a lower interest rate, ultimately every dollar we save is a pure savings, because we’re receiving that funding from someone who’s willing to fund it at a lower rate. It’s just that simple.”
Joos says the move is similar to refinancing a home. The Council also continues to craft next fiscal year's budget that starts next month. East Peoria Public Works is proposing adding two new positions to the department. Those would be the first new hires in more than 30 years for Public Works.